RALEIGH, N.C.–The success of federal insurance programs is well documented. Insurance policies cover most of the field crop acreage planted each year. In recent years, nearly 90 percent of all corn, wheat, soybean, cotton and rice acres were protected by a revenue-based insurance policy. In addition to field crops, insurance policies covering risk are available for cattle, swine and lamb producers.
On October 9 dairy farmers across the U.S. will have a new USDA-sponsored risk management tool in the toolbox. Dairy Revenue Protection will protect against unexpected declines in milk revenue, declines in the value of milk or declines in the state or pooled production region-indexed milk production volume.
Under Dairy Revenue Protection a farmer has only five decisions to make:
-The method to value milk in the policy
-The amount of milk production to cover
-The level of coverage (from 70 to 95 percent of the revenue guarantee)
-Which quarterly contracts he/she wishes to purchase
-The optional protection factor.
Importantly, participating dairy farmers are not precluded from participation in USDA Farm Service Agency’s Margin Protection Program.
Those interested in purchasing Dairy Revenue Protection must do so through an agent selling on behalf of an approved insurance provider such as American Farm Bureau Insurance Services, Inc. https://www.fb.org/market-intel/dairy-revenue-protection-is-here
–Brittany Whitmire, NC State University